Are You Really Ready to Buy a Home? 5 Signs You’re Financially Prepared
- Scott Sweeney
- Apr 11
- 3 min read
Buying a home is a huge milestone—but how do you know if you’re really ready? Beyond just browsing listings and daydreaming about décor, there are key financial indicators that signal you're in a solid position to take the leap into homeownership. Here are five signs that you’re financially prepared to buy a home:
1. You Have a Stable Income
Consistency is key when it comes to lenders. If you’ve had steady employment for at least the past two years and your income is reliable, that’s a strong signal you’re ready. Lenders want to see that you can afford your mortgage payment—not just today, but for the long haul.
💡 Tip: Use a mortgage calculator to see what monthly payment fits your current income level.
2. You’ve Saved Enough for a Down Payment (and Then Some)
A common myth is that you need 20% down—but many loan programs allow for much less. Still, you’ll need some cash upfront, and don’t forget to budget for closing costs, inspections, and moving expenses.
🔑 General Rule: Aim for at least 5–10% of the home’s price saved, plus 2–5% for closing costs.
3. Your Credit Score Is in Good Shape
A higher credit score can qualify you for better mortgage rates, potentially saving you thousands over the life of your loan. Most lenders look for a score of at least 620, but a score of 740+ will give you the most options.
✅ Pro tip: Check your score and fix any errors before applying for a loan.
4. Your Debt Is Under Control
Lenders look at your debt-to-income ratio (DTI) to determine how much of your income goes toward paying debts. Ideally, your DTI should be below 43%—including your future mortgage payment.
🧮 Add up your monthly debts (credit cards, car loans, student loans) and divide by your monthly income to calculate your DTI.
5. You Have an Emergency Fund
Life happens—even when you’re a homeowner. An emergency fund with 3–6 months of living expenses gives you a safety net for unexpected costs like repairs, job changes, or medical expenses.
🔍 Homeownership comes with responsibilities—being financially prepared helps you enjoy it stress-free.
Final Thoughts
Buying a home is exciting—but it’s also a major financial commitment. If these five signs describe your situation, chances are you’re in a strong position to move forward. And if not? That’s okay too. Now you know what to work toward so when the time is right, you’ll be ready.
Still not sure if you’re financially ready? Let’s talk. We can walk through your goals, budget, and the steps to prepare for your future home.
Scott Sweeney
Your NorCal Realtor
M&M Real Estate
BRE Lic# 01938720
Cell: Call/Text 707-330-2324
About Scott Sweeney
SweeneySells
Full Time Realtor 13 Years +
Over 100 Families Served
Top 5% Producing Agent
Buying & Listing Specialist
Contract & Negotiation Ninja
CSUS Business & Marketing Graduate 2006
With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.
Reach out to SweeneySells today, and take the first step towards your real estate goals!
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